LONDON (Alliance News) - Charles Taylor PLC on Monday said two non-life insurance companies in run-off it owns alongside other shareholders have agreed to transfer their insurance businesses to a subsidiary of Berkshire Hathaway Inc, the holding company run by Warren Buffett and Charles Munger, marking a key step in exiting the sector.
Charles Taylor said it will receive a final dividend from Cardrow and Beech Hill once the non-life companies are liquidated.
Part of Charles Taylor's strategy is to cut its exposure to owning non-life insurance companies in run-off.
The news comes after another Charles Taylor subsidiary, LCL Acquisitions, agreed to sell its stake in Bestpark International Ltd, an insurance company in run-off, to Ashbrooke Financial Group Ltd.
The deals will mean that Charles Taylor will no longer own any non-life insurance companies in run-off.
Charles Taylor is still eyeing acquisitions in the UK international life insurance sector, and is actively growing the claims management and services it provides to non-life and life (re)insurers in run-off.
"We are focusing our strategy on acquiring life insurers, which offer attractive opportunities and generate cash releases for the group. Over the last four years we have made four successful life insurance company acquisitions," Chief Executive David Marock said.
"We remain also fully committed to providing services to run-off insurers as part of our wide range of professional services provided to the global insurance market. We have been active in the sector for many years and offer highly-rated claims management services, complemented by our run-off management, commutation analysis and negotiation services," Marock said.
Shares in Charles Taylor were down 2.8% to 257.5 pence at the open on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
